The U.S. Department of Education has published the rates for Federal Direct Loans first disbursed between July 1, 2026 and June 30, 2027.
Federal Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2013, have fixed interest rates that are determined in accordance with formulas specified in sections 455(b)(8)(A) through (C) of the Higher Education Act of 1965, as amended (HEA).
The interest rate is determined annually for all loans first disbursed during any 12-month period beginning on July 1 and ending on June 30, and is equal to the high yield of the 10-year Treasury Notes auctioned at the final auction held before June 1 of that 12-month period, plus a statutory add-on percentage that varies depending on the loan type and, for Direct Unsubsidized Loans, whether the loan was made to an undergraduate or graduate student. Loans first disbursed during different 12-month periods can have different interest rates, but the interest rate determined for any loan is fixed for the life of that loan.
For each loan type, the calculated interest rate may not exceed a maximum rate specified in the HEA. The maximum interest rates are 8.25% for Direct Subsidized Loans and Direct Unsubsidized Loans made to undergraduate students, 9.50% for Direct Unsubsidized Loans made to graduate and professional students, and 10.50% for Direct PLUS Loans made to parents of dependent undergraduate students or to graduate or professional students.
Direct Loan Interest Rates for 2026–2027
On May 12, 2026, the U.S. Department of Treasury held a 10-year Treasury Note auction that resulted in a high yield of 4.468%. The chart below shows the interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2026, and before July 1, 2027.
Interest Rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans First Disbursed on or After July 1, 2026, and Before July 1, 2027
|
Loan Type |
10-Year Treasury Note High Yield |
Add-On |
Fixed Interest Rate |
|
Direct Subsidized Loans and Direct Unsubsidized Loans for Undergraduate Students |
4.468% |
2.05% |
6.52% |
|
Direct Unsubsidized Loans for Graduate and Professional Students |
4.468% |
3.60% |
8.07% |
|
Direct PLUS Loans for Parents of Dependent Undergraduate Students and for Graduate or Professional Students |
4.468% |
4.60% |
9.07% |